Operation Sindoor: How a Covid-era change to spending rules came in handy

During Covid, the government increased the Contingency Fund limit from ₹500 cr to ₹30,000 cr, a measure that made it easier for the expenditure dept to disburse funds without Parliamentary approval

A significant rule change introduced to deal with the Covid-19 pandemic came handy in the recent military operations against Pakistan, allowing the India government flexibility in drawing funds. The Covid-19 pandemic-drive change means the union government can finance any war with up to ₹30,000 crore without falling foul of spending rules.

 

The changes were the increase in the corpus of Contingency Fund of India from ₹500 crore to ₹30,000 crore, approved by Parliament in FY22. The Contingency Fund is an imprest mechanism mandated by the Constitution of India that allows the Centre to finance unforeseen expenditures which arise when Parliament